Libby Cantrill

In the SOTU, President Trump explicitly called on Congress to act regarding "institutional ownership" of single-family homes. While PIMCO notes Congress is unlikely to pass significant legislation before the midterms, the "Bully Pulpit" risk is high. Continued rhetoric attacking institutional landlords creates headline risk and potential regulatory overhang for Single-Family Rental REITs. SHORT. Sentiment will remain negative on this sector as long as the administration targets it as a solution to housing affordability. Gridlock in Congress prevents any actual legislation, leading to a relief rally.

In the SOTU, President Trump explicitly called on Congress to act regarding "institutional ownership" of single-family homes. While PIMCO notes Congress is unlikely to pass significant legislation before the midterms, the "Bully Pulpit" risk is high. Continued rhetoric attacking institutional landlords creates headline risk and potential regulatory overhang for Single-Family Rental REITs. SHORT. Sentiment will remain negative on this sector as long as the administration targets it as a solution to housing affordability. Gridlock in Congress prevents any actual legislation, leading to a relief rally.